🇺🇸🇯🇵 Trump Threatens Japan with 35% Tariffs as Trade Tensions Explode
President Donald Trump has reignited trade tensions with Japan by threatening to impose tariffs of up to 35% on Japanese goods, a sharp increase from the current 24% imposed earlier this year. He firmly stated there would be no extension of the July 9 negotiation deadline and expressed skepticism about reaching any deal. Trump criticized Japan for being “spoiled” and unwilling to cooperate—particularly in refusing to increase imports of American agricultural products like rice, while continuing to benefit from booming car exports to the U.S.
Japan’s Prime Minister Shigeru Ishiba responded by warning that such aggressive tariff hikes could severely damage Japan’s export-driven economy. Tokyo called the threat “deeply disappointing” and reaffirmed its commitment to protecting national interests. Financial markets reacted immediately: the Nikkei 225 fell over 1%, and the yen weakened against the dollar as investors braced for further instability. Japanese officials are urgently working on a response, especially to shield the automotive sector, which is already under a 25% tariff.
While Trump pursues smaller trade agreements with countries like India and Vietnam, his stance on Japan signals a hardline approach. U.S. businesses are increasingly voicing concern that such sweeping tariffs may hurt American companies by raising costs across supply chains. With both nations standing firm and the deadline approaching, the risk of a broader trade rupture is growing—and the economic consequences could extend well beyond the Pacific.